Supreme, the iconic skate and streetwear brand, is set to be acquired by Ray-Ban maker EssilorLuxottica for $1.5 billion in cash. The announcement was made on Wednesday by VF Corporation, Supreme’s current parent company. This acquisition will see Supreme joining EssilorLuxottica’s impressive portfolio, which already includes renowned brands like Oakley and Ray-Ban.
Supreme Joins EssilorLuxottica’s Prestigious Portfolio
Founded in 1994 by James Jebbia, Supreme has garnered a loyal following, particularly among young consumers, thanks to its strategy of regularly releasing limited-edition clothing and accessories and its collaborations with other brands. The acquisition by EssilorLuxottica is seen as a significant opportunity to expand Supreme’s reach and innovation. “We see an incredible opportunity in bringing an iconic brand like Supreme into our company,” said EssilorLuxottica executives Francesco Milleri and Paul du Saillant in a statement. “It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages, and creativity.”
Strategic Acquisition to Enhance Brand Reach and Innovation
Supreme’s acquisition comes as a strategic move by EssilorLuxottica to enhance its brand portfolio and reach a broader audience. VF Corporation’s president and CEO, Bracken Darrell, explained that the decision to sell Supreme was due to “limited synergies” between the brand and VF’s other brands, which include outdoor gear companies like The North Face and Napapijri, as well as footwear brand Vans. This made the sale “a natural next step.”
Supreme’s founder, James Jebbia, expressed optimism about the sale, stating that it would allow the brand to focus more on its customers while setting up for long-term success. “We are excited about this new chapter and the potential for growth and innovation that EssilorLuxottica brings,” Jebbia said. VF Corporation acquired Supreme in 2020 for $2.1 billion from Jebbia and two private equity firms. The sale to EssilorLuxottica represents a strategic shift for both Supreme and its parent companies, aiming to leverage EssilorLuxottica’s extensive resources and market presence.
Supreme’s Direct-to-Consumer Model to Continue Under New Ownership
Supreme has built its reputation on a direct-to-consumer model, exclusively selling its products through its online store and 17 brick-and-mortar locations across the U.S., Europe, and Asia. This approach has created a unique shopping experience, often resulting in lines of young shoppers eagerly awaiting new product releases.
EssilorLuxottica has stated its intention to maintain this direct-to-consumer model, ensuring that Supreme’s unique market presence and customer engagement continue under its ownership. “We respect Supreme’s distinct brand identity and will preserve its direct connection with consumers,” said Chris Perry, a spokesperson for EssilorLuxottica.
The acquisition marks a significant moment in Supreme’s history, promising new opportunities for innovation and growth while maintaining the brand’s core values and consumer approach. As Supreme integrates into EssilorLuxottica’s portfolio, fans and customers can look forward to continued exciting releases and collaborations that have defined the brand’s legacy.